Tuesday, June 11, 2013

The History Of A Dangerous Idea

I really recommend this video by Mark Blyth, the Scottish Economist who really dissects the myth of austerity in a real historical context in language we can all understand, and he's quite entertaining at the same time. This is rather brilliant!.

Governments today in both Europe and the United States have succeeded in casting government spending as reckless wastefulness that has made the economy worse. In contrast, they have advanced a policy of draconian budget cuts--austerity--to solve the financial crisis. We are told that we have all lived beyond our means and now need to tighten our belts. This view conveniently forgets where all that debt came from. Not from an orgy of government spending, but as the direct result of bailing out, recapitalizing, and adding liquidity to the broken banking system. Through these actions private debt was rechristened as government debt while those responsible for generating it walked away scot free, placing the blame on the state, and the burden on the taxpayer.

That burden now takes the form of a global turn to austerity, the policy of reducing domestic wages and prices to restore competitiveness and balance the budget. The problem, according to political economist Mark Blyth, is that austerity is a very dangerous idea. First of all, it doesn't work. As the past four years and countless historical examples from the last 100 years show, while it makes sense for any one state to try and cut its way to growth, it simply cannot work when all states try it simultaneously: all we do is shrink the economy. In the worst case, austerity policies worsened the Great Depression and created the conditions for seizures of power by the forces responsible for the Second World War: the Nazis and the Japanese military establishment. As Blyth amply demonstrates, the arguments for austerity are tenuous and the evidence thin. Rather than expanding growth and opportunity, the repeated revival of this dead economic idea has almost always led to low growth along with increases in wealth and income inequality. Austerity demolishes the conventional wisdom, marshaling an army of facts to demand that we recognize austerity for what it is, and what it costs us.

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Art & Culture Touareg

Groupe Coordination Aude Mali

Groupe Coordination Aude Mali assists refugees from Timbuctu with their basic survival needs in the refugee camp in Djibo, Burkina-Faso.
Most of them have gone back to their homes near Timbuctu and GCAM has restarted our school with 4 classes.
We already have more than 70 students attending every day but we still need basic tools and food which GCAM provides. We also pay the salaries of the 2 teachers.
With your help we could do major repairs on buildings that are partially destroyed. You can help us financing this school. A small donation goes a very long way. Thank you so much!

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About Me

Well, okay...I'm a Detroit boy transplanted to the wilds of rural France, hacking my way through the cultural underbrush.
I am an artist, I was a rock musician, professional chef and a railroad drawbridge operator. I'm just here to help.